Diversified Arbitrage Fund
The following is a list of selected research papers published by the portfolio managers of this fund:


Macey, Jonathan, Geoffrey Miller, Mark Mitchell and Jeffry Netter, Lessons From Financial Economics: Materiality, Reliance, and Extending the Reach of Basic v. Levinson, Virginia Law Review, August, 1991.

Macey, Jonathan, Mark Mitchell and Jeffry Netter, Restrictions on Short Selling: An Economic and Legal Analysis of the Uptick Rule and Its Role in the 1987 Stock Market Crash, Cornell Law Review, July, 1989.

Maloney, Michael, Mark Mitchell and Robert McCormick, Managerial Decision Making and Capital Structure, Journal of Business, April, 1993.

Meulbroek, Lisa, Mark Mitchell, Harold Mulherin, Jeffry Netter and Annette Poulsen, Shark Repellents and Managerial Myopia: An Empirical Test, Journal of Political Economy, October, 1990.

Mitchell, Mark, The Value of Corporate Takeovers, Financial Analysts Journal, Jan/Feb, Graham and Dodd Scroll Award, 1991.

Mitchell, Mark and Kenneth Lehn, Do Bad Bidders Become Good Targets?, Journal of Political Economy, April, 1990, Roger F. Murray Award, First Prize, 1989.

Mitchell, Mark and Michael Maloney, Crisis in the Cockpit? The Role of Market Forces in Promoting Air Travel Safety, Journal of Law and Economics, October, 1989.

Mitchell, Mark and Harold Mulherin, The Stock Price Response to Pension Terminations and the Relation of Terminations with Corporate Takeovers, Financial Management, 1989.

Mitchell, Mark and Harold Mulherin, The Impact of Public Information on the Stock Market, Journal of Finance, July, 1994.

Mitchell, Mark, and Harold Mulherin, The Impact of Industry Shocks on Takeover and Restructuring Activity, Journal of Financial Economics, June, 1996.

Mitchell, Mark and Jeffry Netter, Stock Repurchases and Insider Transactions in the Wake of the October 1987 Stock Market Crash,  Financial Management,1989.

Mitchell, Mark and Jeffry Netter, Triggering the 1987 Stock Market Crash: Antitakeover Provisions in the House Ways and Means Tax Bill?, Journal of Financial Economics,1989.

Mitchell, Mark and Todd Pulvino, Characteristics of Risk and Return in Risk Arbitrage, Journal of Finance, December, 2001.

Mitchell, Mark, Todd Pulvino and Erik Stafford, Limited Arbitrage in Equity Markets, Journal of Finance, April, 2002, Smith-Breeden Award, First Prize 2002.

Mitchell, Mark, Todd Pulvino and Erik Stafford, Price Pressure Around Mergers, Journal of Finance, February, 2004.

Mitchell, Mark and Erik Stafford, Managerial Decisions and Long-Term Stock-Price Performance, Journal of Business, July, 2000, Merton Miller Award, First Prize 2000.

Pulvino, Todd, Effects of Bankruptcy Court Protection on Asset Sales, Journal of Financial Economics, 1999.

Pulvino, Todd, Do Asset Fire-Sales Exist?  An Empirical Investigation of Commercial Aircraft Transactions, Journal of Finance, 1998, Smith-Breeden Distinguished Paper Award.

Weston, Fred, Mark Mitchell and Harold Mulherin, Takeovers, Restructuring and Corporate Governance, Pearson/Prentice Hall, 4th Edition, 2004.

The opinions and views expressed in the above research papers and/or articles do not necessarily reflect those of ALPS Distributors, Inc. and are subject to change at any time based on market and other conditions. These views may not be relied on as investment advice. Additionally, any references to specific company securities should not be construed as a recommendation or investment advice.

Diversified Arbitrage Fund

This Fund has the risk that the anticipated arbitrage opportunities do not play out as planned, resulting in potentially reduced returns or losses to the Fund as it unwinds its trades. This fund enters into a short sale by selling a security it has borrowed. If the market price of a security increases after the Fund borrows the security, the Fund will suffer a potentially unlimited loss when it replaces the borrowed security at the higher price. Short sales also involve transaction and other costs that will reduce potential Fund gains and increase potential Fund losses. The Fund uses derivatives to hedge certain economic exposures. The use of derivatives exposes the Fund to additional risks including increased volatility, lack of liquidity, and possible losses greater than the Fund's initial investment as well as increased transaction costs.

 


All AQR Funds. An investment in any of the AQR Funds involves risk, including loss of principal. The value of the Funds’ portfolio holdings may fluctuate in response to events specific to the companies in which the Fund invests, as well as economic, political or social events in the United States or abroad. Please refer to the prospectus for complete information regarding all risks associated with the Funds.

An investor considering the Funds should be able to tolerate potentially wide price fluctuations. The Funds are subject to high portfolio turnover risk as a result of frequent trading, and thus, will incur a higher level of brokerage fees and commissions, and cause a higher level of tax liability to shareholders in the Funds. The Funds may attempt to increase its income or total return through the use of securities lending, and they may be subject to the possibility of additional loss as a result of this investment technique.